Two N.Y. Firms Shut Down for Failure to Buy Workers’ Comp

July 31, 2007

The New York State Workers’ Compensation Board reports it has ordered two businesses to close immediately for failing to comply with workers’ compensation laws.

This is the second set of closures ordered under the workers’ compensation reform initiative Gov. Eliot Spitzer signed into law in March. The board can now order businesses to shut down for failing to obtain workers’ compensation insurance.

“The health and safety of working people is too important to tolerate employers who ignore the law,” Donna Ferrara, chair of ther board, said. “These firms have seen their employees injured, and they have ignored orders to secure workers’ compensation insurance.”

In 2006, an employee of Advantage Home Improvement in Johnson City filed a claim for a work-related injury. The company, which is still operating without insurance, is owned by John Horner and owes $64,221 in restitution and penalties, according to officials.

Carman Lafalce, owner of Paul’s Cleaners in Albany, acknowledged he did not have insurance when two of his workers sustained injuries on the job in 1998 and 1999. With penalties and restitution, Paul’s Cleaners owes $88,225. The business is still operating without insurance.

Employers ordered to stop work can apply to the board to have the order lifted once they agree to restitution and obtain workers’ compensation insurance.

Source: Workers’ Compensation Board

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